CHICOPEE -- MassMutual will not sell its Learning and Conference Center at 350 Memorial Drive after all.

The deal -- announced in May -- fell through months ago, said James Lacey, head of media relations and strategic communications for Massachusetts Mutual Life Insurance Co. Lacey said business circumstances changed for the buyers.

They decided not to proceed with the sale and withdrew the offer.

"The property is not being sold, is not on the market and is being fully utilized as a business asset for MassMutual," Lacey wrote in an email.

The buyers, GFI Partners, LLC and Health Partners New England, had planned on returning the property to its earlier use as a psychiatric hospital.

Michael P. Krupa, president and CEO of Devens-based Health Partners New England, didn't return a call for comment Monday afternoon.

GFI Partners is a real estate advisory company in Boston.

The 12.2-acre property near Exit 5 of the Massachusetts Turnpike was Charles River Hospital West before the Springfield-based insurance giant bought it in 2001 and converted it into a place that includes banquet facilities, hotel rooms and 160 parking spaces for MassMutual to hold business meetings and occasional community events.

Monarch Enterprises, headed by the late Peter L. Picknelly, bought Charles River Hospital West for $3.2 million at a foreclosure auction in 1999.

The former psychiatric hospital had defaulted on its $13.5 million mortgage to the federal Department of Housing and Urban Development. MassMutual paid Monarch $4 million for it.

The 37,000-square -foot building dates to 1990, according to city tax records. It is assessed at $7.9 million.